Loan Comparator
Don't get tricked by 'Low Interest' marketing. Compare the total cost.
Choosing between two loan offers can be tricky. Bank A might offer a lower interest rate but charge a high processing fee, while Bank B offers zero fees but a slightly higher rate. The Loan Comparator helps you look past the marketing gimmicks. Enter the details of both offers side-by-side to calculate the Total Payable Amount and see which loan is mathematically cheaper for you.
Bank A Offer
Bank B Offer
Total Savings
₹0
by choosing Bank B
Bank A EMI
₹0
Bank B EMI
₹0
Total Cost Comparison
Analysis
Bank B is the mathematically cheaper option.
Even a 0.1% difference in interest rate can cost you lakhs over 20 years. Always compare the Total Payable amount (Interest + Fees), not just the EMI.
🧠 Confusion Matrix: Which Loan Type to Pick?
| If you have... | Loan Type | Approx Rate | Verdict |
|---|---|---|---|
| Gold Jewelry | Gold Loan | ~8.5 - 9.5% | Best for short term cash. |
| Property (House/Plot) | Loan Against Property | ~9 - 10.5% | Best for huge amounts (>10L). |
| Fixed Deposits | Overdraft on FD | FD Rate + 1% | Cheapest & Fastest. |
| No Assets | Personal Loan | 11 - 16% | Most expensive. Last resort. |
The "0.05%" Trap: Why Interest Rate Isn't Everything
Imagine Bank A offers 8.50% and Bank B offers 8.55%. You naturally rush to Bank A.
But wait—if Bank A charges ₹20,000 in processing fees and Bank B charges Zero, Bank B might actually be cheaper, especially for shorter loan tenures.
Rule of Thumb: Always compare the APR (Annual Percentage Rate), which combines both Interest and Fees into a single cost metric.
4 Things to Check Before Signing
1. Processing Fees
Is it a flat fee (e.g., ₹5,000) or a percentage (e.g., 1% of loan)? A 1% fee on a ₹50 Lakh loan is ₹50,000—a huge upfront cost!
2. Prepayment Charges
Does the bank charge a penalty if you pay off the loan early? For floating rate home loans, this should be Zero.
3. Loan Type (Fixed vs Floating)
A "Fixed" rate might look attractive but is often 2-3% higher than the market rate. Floating rates are usually better for long-term loans.
4. LTV Ratio (Loan to Value)
Does the bank fund 80% or 90% of the property value? A higher LTV means a lower down payment for you.
Frequently Asked Questions
Should I compare interest rate or APR?▼
APR reflects the total borrowing cost, including fees, making it a better comparison metric.
Fixed vs Floating rate: which is better?▼
Floating rates suit long-term loans, while fixed rates offer certainty for short-term borrowing.